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By Dumisani Nsingo Senior Business Reporter
THE country’s biggest blanket manufacturer, National Blankets, says it needs more than $3 million to recapitalise and push production from 20 percent to 60 percent capacity utilisation.
National Blankets’ acting chief executive officer Mr Freedom Dube said the capital would go towards the refurbishment of one of the company’s strategic machinery as well as purchasing raw material to ensure readily available stocks for production efficiency purposes.
He said this during a tour of the company by the Reserve Bank of Zimbabwe Governor, Dr John Magudya, and members of the Zimbabwe National Chamber of Commerce last Thursday.
“We need about $3 million to resuscitate both our spinning and finishing sections as well as for importing raw material,” Mr Dube said.
The company was allocated $500 000 under the Distressed Industries and Marginalised Areas Fund three years ago but Mr Dube said the tenure was too short to have in impact.
The fund had a one year tenure.
“That was too short, such facilities must give companies at least three years to repay so that they can increase production first,” Dr Mangudya weighed in.
National Blankets imports its raw materials from Turkey, India, China and South Africa.
Mr Dube said the demise of the local clothing sector had made business uncompetitive as they were relying on imports for raw materials.
“The death of the country’s clothing and textile has further worsened the situation as we used to get some off cuts from the clothing companies but now we are being forced to import yarn,” he said.
The company is in the process of rationalising its operations, a situation which has seen it relocating all its production to a smaller factory while also downsizing its workforce.
“We are almost complete with regards to relocating to the small factory as most of the production is already taking place here (small factory),” Mr Dube said.
He said the influx of imported cheap blankets was having a negative impact on their business.
“Imported blankets are coming in cheap evading duty so the playing field is not level at all. However, consumers should take note that our blankets are of higher quality compared to the imported ones. The imported ones are mostly knitted while ours are woven which makes them durable,” Mr Dube said.
Online Reporter